BILLINGS -- To a lot of people, it sure sounds like a scam.

The phone rings at 6 a.m., and the caller says your auto warranty is nearly expired. And the caller can help.

"It's not really a scam, but it is irritating," said Tate Nation, sales manager at Archie Cochrane Ford in Billings. "What happens is that somehow these aftermarket warranty companies get a hold of dealer lists and just call around and try to sell these people extended service plans."

The staff at Archie Cochrane has had what Nation describes as "a slew" of customers getting these calls.

"People think that it's Archie Cochrane calling, and it's not," Nation said.

Shela Styer, with the Better Business Bureau, describes these types of calls as "a type of solicitation." People are led to believe that they are extending the warranty they already have, but that is not the case with these aftermarket warranty companies. Styer said potential customers need to beware of the vague language in the contracts.

"They think it covers their car bumper to bumper, but it's just vague enough that it doesn't," she said.

People can protect themselves, she said, by carefully reading the contract. "It's just a matter of understanding what they cover and what they don't cover," Styer said.

If you do fall for the pitch and buy a new warranty for your car, there's no guarantee the company is going to be around long enough to make it worthwhile.

"They're like a fly-by-night warranty company that you never know whether they're going to go bankrupt or not," said Tammy O'Donnell, service adviser at Lithia Dodge.

She said there are some legitimate warranty companies out there that pay their bills and help their customers, but the majority aren't worth dealing with. Many dealerships won't take these aftermarket warranties for car repairs.

"We have one now that we're not taking because they're in some kind of litigation," O'Donnell said.

Even if the dealership accepts the warranty company's business, there could still be trouble for the car owner.

"I had a customer that didn't get her vehicle back for almost two months because they didn't want to use our product," O'Donnell said. "They wanted to use their product, a used transmission."

The delays kept the customer's car in the dealership.

"She was very upset, but our hands were tied," O'Donnell said.

The best bet is not to fall for the sales pitch.

"Just don't buy them," Nation said. "They're expensive, and those companies are in and out of the market. Sometimes they go broke, and you have no way to go after them if the warranty's no good."

His advice?

"If you want to buy an extended warranty, buy it from a dealership," he said.

O'Donnell agrees.

"I would stick with the dealership if you can," she said. "They might be more expensive, but they're easier to deal with."